The Idaho Agency Disclosure Brochure (ADB) is a real estate consumer guide. The guide explains the type of relationship you can have with a real estate agent. The brochure simplifies Idaho's real estate law related to agency. It's purpose is to define agency in a way that is easy to understand. It explains that there are two types of relationships. You are either a client or a customer.
You're a real estate client in Idaho when you've signed a representation agreement. The representation agreement is between you and the broker representing you. If you're a buyer, you will sign form RE14, the "Buyer Representation Agreement". The agreement is usually signed by you and your agent, who is acting on behalf of their broker. The RE14 form outlines the terms of the agreement. It includes what services the broker will provide. You will agree to limited dual, assigned, or single agency representation. The broker will also disclose all compensation for the services provided.
If you are a home seller, you will sign form RE16, the "Seller Representation Agreement". This contract is sometimes referred to as "Exclusive Right To Represent". You sign the agreement and your agent signs on behalf of the broker. The RE16 outlines the terms of the agreement. Some of the terms include the length of the contract, the sell price, and what financing you will accept. It also outlines what fees you will pay the brokerage for marketing and selling the property. This kind of agreement is exclusive. A seller should never have more than one Representation agreement on a property.
In Idaho, your broker and agent are duty-bound to promote your best interest as a client. The brochure states that your agent will:
A real estate client relationship is the highest form of representation between you and a broker in Idaho. Your agreement includes representation and compensation. Your agent and broker are duty-bound to look out for your best interest.
Some people don't want to sign a representation agreement, but still want the services of an agent. If this is you, you will sign a compensation agreement and will be a customer rather than a client.
Some people choose not to have a real estate agent to represent them when they buy a house. If this is you, your agent will most likely ask you to sign form RE15 "Compensation Agreement with Buyer". Form RE15 does NOT establish representation. The agreement says that IF the agent finds you a home, and you buy it, you will compensate them for their work. A compensation agreement with Buyer is NOT exclusive. A buyer can have RE15's with many agents at the same time. The downside to this arrangement is real estate agents are less likely to devote a lot of time to finding you a house. This is because they know they could be competing with several other agents. It is usually more profitable to establish an exclusive relationship.
Sellers that don't sign a representation agreement with a broker are customers. For sale by owner sellers are a good example. Agents are willing to show FSBO properties but want to be paid for their work. So they will ask you to sign a form RE12 "Compensation agreement with seller". This form does not establish representation. It says that if the agent brings a buyer and the buyer buys your home, the you will compensate the brokerage. The agreement identifies the property, terms of the contract, brokerage, and fees. A compensation agreement with a seller is NOT exclusive. A seller can have many compensation agreements on the same property at the same time.
Although customers do not have a representation agreement with a Realtor, agents have a duty to:
IMPORTANT TIP: A customer relationship does not enjoy the same benefit as a client relationship. The ADB states that "a real estate licensee is not required to promote your best interest or keep your bargaining information confidential" if you are a customer. You should keep this in mind as you decide on agency. We highly recommend you establish a client relationship with a representation agreement. This relationship provides you with the greatest protection.
If you have questions about the ADB we can help. Contact us at 208-717-1748 or use the chat tool below to talk with us. We are happy to clear up any questions you have.